QUOTE (Agent F @ Apr 27 2009, 08:16 PM)

Digital signals are made of pulses of precise, positive voltages and zero voltages. A pulse of positive voltage represents a 1. A pulse of zero voltage (or lack of voltage) represents a 0. Using 1s and 0s to represent information is the binary system. Each pulse in a digital signal is called a binary digit, or bit. A bit can have only one of two possible values: 0 or 1. Eight bits together form a byte. One byte carries one piece of information. For example, "110111" stands for "55". Computers read and write information in bits and bytes. When a number is represented in binary form, each bit position in the number represents a specific multiple of two. Because a byte is made of eight bits, it has eight placeholders. When counting placeholders, you count from right to left. The placeholder to the right is known as the zero position, the one one to the left of that is known as the first position, etc.
To put things simple, every day use is done using base-10 mathematics known as decimals. 10N Computers, on the other hand, use a base-2 system known as binary. 2N.
8 bits (b) = 1 Byte (B or Bi)
1 Kilobyte (KB or Kib) = 1024 Bytes
1 Megabyte (MB or Mib) = 1024 Kilobytes
and so fourth as illustrated by King Aragorn. As mentioned by Dani and further explained by me, Microsoft didn't decide on using 2-base instead of the typical 10-base that we use daily. It all comes down to digital signals.
That means a computer reads it like Morse code.
But Morse has 3 signs, long, short, empty.
And then it uses the 2-number system.
Well, a computer doesnt communicate directly

That explains all the transformators and other electrical components, shaping the signal.